We’ve been warning for weeks that December markets can be very punishing and so far we’ve been proven correct.
Look no further than the US bond market, which has been falling like a stone in recent days.
The last two Decembers have seen massive moves, in opposite directions, with major bottom in yields right after the turn of 2008 into 2009 and a top in 2009 into 2010…
Currencies have been extremely volatile in December as well, largely moving in sync with yields.
They are on the rise again, with the 10-year note now at 3.236%.
This suggests the greenback could be strong for the balance of the month but could peak for a time early in the New Year…
